Indian exports hold firm in September despite US hit

Shipments to US fall 12%; trade gap widens to $32.15 billion in September, a 13-month high

- Dhirendra Kumar & Rhik Kundu

India’s merchandise exports held firm in September, rising 6.7% year-on-year to $36.38 billion, even as shipments to the US fell 11.9%.

This was the first month of the US's tariffs coming into full effect. However, despite the rise in exports, the trade deficit widened to a 13-month high, mainly due to a surge in gold imports.

Merchandise trade deficit widened to $32.15 billion in September from $26.49 billion in the previous month, according to provisional data from the commerce ministry on Wednesday. This was the highest level since August 2024.

The rise in exports during the month was supported by strong shipments to the UAE, China, the UK, Germany, and Bangladesh. With the sharp decline in exports to the US, the country's share in India’s overall exports fell to just 15% in September, versus over 20% earlier this year.

Exports had stood at $35.10 billion in August. Imports rose to $68.53 billion in September from $61.59 billion in August. A year earlier, in September 2024, merchandise exports had stood at $34.58 billion while imports were at $55.36 billion.